edited media release

The Serious Fraud Office has filed charges against a former KCDC manager and two associates alleging they deceived Auckland and Kapiti councils into awarding contracts valued at more than $12 million to an engineering firm they controlled. The three people, who have interim name suppression, face two charges each. They appeared in the Porirua District Court yesterday, where they entered not guilty pleas and elected trial by jury.

The charges allege that the first defendant, while employed at Auckland Council and KCDC working on infrastructure projects, was at the same time involved in running an engineering firm with the remaining two defendants; the first defendant used their council positions to obtain more than $12 million in work for the engineering firm, including manipulating the procurement process.

Of this $12 million, it is alleged the engineering firm received $1.7 million from Auckland Council between 2011 and 2015, and $10.5 million from Kāpiti Coast District Council between 2015 and 2024. KCDC referred the matter to the SFO following its own internal audit.

The defendants’ next scheduled appearance is at the Porirua District Court on 15 September.

KCDC says: “Kāpiti Coast District Council has been advised by the Serious Fraud Office (SFO) that a former council employee has been charged with obtaining by deception.

These charges have come about following an internal investigation that our Council referred to the SFO in 2023.

Council is committed to a culture that is open, transparent, and accountable and we have policies, systems and processes in place for staff to raise concerns when they come across behaviours or practices that do not align with expectations of Council employees.

We remain focused on ensuring our internal controls, governance, finance and accounting processes are operating effectively.

As the charges are currently progressing through the courts and are subject to name suppression, we’re unable to provide any further details relating to the charges beyond what the SFO have shared.”

John of our editorial group says: “I raised this with KCDC back in 2024 and was stonewalled, also with the SFO a bit later in the year, at the time when I was questioning the work of EY’s auditor but they both refused to take action. I will dig in my correspondence and put the file trail together.”